Latest News from Keppel Corporation

• Keppel bolsters shipbuilding capacity with Nantong Shipyard Keppel Offshore & Marine Limited (Keppel O&M) has officially opened its new wholly-owned subsidiary, Keppel Nantong Shipyard Co. Ltd (Keppel Nantong), in Nantong, Jiangsu province, China, today. Mr Luo Yi Min, Party Secretary of Communist Party of China (CPC) Nantong Committee, graced the occasion as the Guest-of-Honour, joined by more than 300 guests. The ceremony was landmarked by the sale of two 45-tonne Azimuth Stern Drive tugboats to Kuwaiti owner, Arabian Gulf Mechanical Services & Contracting (AGMS). The tugboats will be delivered in September this year. The inauguration ceremony also celebrated the keel laying of two Anchor Handling Tug/Supply (AHTS) vessels for Whitesea Shipping & Supply LLC (WSS), company based in United Arab Emirates and a harbour tugboat for Singapore-based Keppel Smit Towage Pte Ltd (KST). These vessels are among the 18 offshore support vessels and tugboats that Keppel Nantong is currently building for a broad spectrum of worldwide clientele. The yard has a capacity to build up to 25 such vessels on its 16-hectare site. Mr Choo Chiau Beng, Chairman and CEO of Keppel O&M, said, “The addition of this Nantong facility has increased Keppel’s newbuilding capacity in meeting the growing demand for specialised vessels to serve the offshore field development market and growth in Liquefied Natural Gas terminals and maritime ports. “China is attractive as a cost efficient and competitive shipbuilding centre. We intend to increase our investment in Nantong and optimise Keppel Nantong’s facilities to take on more and higher value projects.” Acquired by Keppel O&M in May 2005, the principal activities of Keppel Nantong are in the engineering and construction of specialised vessels such as AHTS vessels and tugboats. Through the transfer of expertise and technology from Keppel Singmarine, with its 120 years of providing quality services in specialised shipbuilding, Keppel Nantong achieved its initial production targets after over one year of operations. It was also awarded the Industrial Excellence Award by the Nantong Municipal People’s Government in March 2007. This is an annual award to recognise outstanding enterprises which are forward-looking and have made significant contributions to Nantong’s economic development. Last month, the Gangzha District’s Administration of Work Safety Department chose Keppel Nantong for its District Safety Meeting, where the yard’s Health, Safety and Environment (HSE) practices and policies were shared with companies alike as best practices. Keppel Nantong Shipyard is located along the Yangtze River, within proximity to supporting industries in the Municipality of Nantong, 100 km north-west of Shanghai. Keppel O&M’s near market, near customer strategy is bolstered by a global network of 20 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner in solutions for the offshore and marine industry. For further information, please contact: Singapore Ms Sarah Seah Deputy General Manager Keppel Group Corporate Communications Tel: +65 6413 6420 Email: sarah.seah@kepcorp.com Nantong, China Ms Grace Chia Assistant Manager Keppel Group Corporate Communications Hph: +86 138 0629 9628 Email: grace.chia@kepcorp.com • First Coral Nursery Launched In Singapore A significant milestone in marine conservation efforts to provide coral resource on a long-term basis The National Parks Board (NParks) and its partners Keppel Group, National University of Singapore and National Environment Agency, launched the first coral nursery in Singapore at a site off Pulau Semakau today. This coral nursery will enable us to proactively enhance existing marine habitats by maximizing the survival of naturally occurring corals. Officiating the launch of the coral nursery was Guest of Honour Ms Grace Fu, Minister of State for National Development. Speaking at the event, Ms Fu said, “Marine conservation in Singapore has always posed a much greater challenge than land conservation. We are one of the busiest ports in the world, and we are constantly in search of space. Any effort in marine conservation will therefore have to reconcile with the reality of our busy maritime activities, and our need to reclaim land to create space. However, I believe we can find pragmatic and unique solutions.” Ms Fu also highlighted,”…Pulau Semakau is a good example of what we can do. Through careful management, we have allowed a rich marine ecological system to thrive side-by-side with a landfill. Now, we can also boast of having a coral nursery close to the landfill. This is indeed an achievement that we can be proud of.” Mr Chan Soo Sen, Director (Chairman’s Office) of Keppel Corporation, added, “Keppel is proud to be the sponsorship partner for Singapore’s first coral nursery by donating $250,000 over two years to support the marine conservation project. As the first private organisation to recognise the importance of a coral nursery in Singapore, we seek to play an active role in the partnership and contribute meaningfully to the project. Beyond funding, we are also committing our expertise, resources and volunteers to support this two-year project. Our Keppel volunteers are excited to learn more about marine life and do their part for this marine environmental initiative.” The sponsorship of the coral nursery will be Keppel’s second major “green” effort since June this year when Keppel supported NEA’s third “Bring Your Own Bag Day” by donating 100,000 reusable bags through FairPrice stores islandwide. With NUS providing strong scientific input and NEA providing expertise in water quality management, the multiple agencies collaborated to create a very unique solution to balance urban development with marine conservation. Development and industrialization have impacted coral reefs in Singapore over the years. Even though it has been reported that 60% of the local original reefs have been lost, Singapore still boast high biological diversity with almost 200 species of reef-forming hard corals. This accounts for about 25% of the global total species. This proactive marine conservation initiative seeks to sustain the marine biodiversity in Singapore as development here continues. The coral nursery located underwater at a site off Pulau Semakau is a two-year project that aims to grow as many hard coral fragments as possible. Suitable candidate species for propagation of coral colonies will be grown to sufficient size and transplanted to coral reefs off the southern coast of Singapore to enhance the ecological health of these coral reef habitats. The suitable candidate species will be collected from existing reefs at Pulau Semakau and other reefs in Singapore. This first coral nursery makes use of “corals of opportunity” that are coral fragments damaged by some impact. Unlike commercial nurseries that make use of fragments deliberately broken off from healthy colonies, no healthy colonies will be used here. Breaking fragments off from healthy colonies poses a risk to the donor colonies. About National Parks Board The National Parks Board (NParks) is responsible for providing and enhancing greenery of the Garden City. Beyond green infrastructure, NParks is committed to enhance the quality of life through creating memorable recreational experiences and lifestyles. NParks manages more than 300 parks, the park connector network and the lush roadside greenery in Singapore. Some of the parks managed include Singapore Botanic Gardens, Fort Canning Park, East Coast Park, Bishan Park, Telok Blangah Hill Park and Pulau Ubin Recreation Area. In addition, NParks manages nature reserves such as Sungei Buloh Wetland Reserve and Bukit Timah Nature Reserve. As Singapore’s scientific authority on nature conservation, NParks monitors and coordinates measures to ensure the health of designated nature areas. NParks is also the lead agency in the efforts to continually upgrade the Landscape Industry in Singapore. It works closely with industry partners to promote good work practices and create a thriving, creative, innovative and professional industry that will support Singapore’s aspirations of being a City in the Garden. For more information, please visit www.nparks.gov.sg About Keppel Group The Keppel Group engages in the three key businesses of Offshore & Marine, Property and Infrastructure to broaden its earnings base, deliver sustainable growth and create maximum value for shareholders. As it continues to grow its key businesses into global entities, Keppel remains committed to the preservation and enhancement of the environment. From creating quality living and working spaces by integrating environmentally viable management in our property projects, providing technology solutions to address a wide spectrum of environmental issues, to the introduction of cleaner diesel across SPC's network of service stations in Singapore, Keppel views the protection of the environment integral to our continued pursuit of growth. About National University of Singapore The National University of Singapore (NUS) is a multi-campus university of global standing, with distinctive strengths in education and research and an entrepreneurial dimension. Its diverse and cosmopolitan community of 23,500 undergraduate and 9,000 graduate students from 88 countries contribute to a rich learning and living environment across three campuses -- its principal 150-hectare Kent Ridge campus, Bukit Timah campus and Duke-NUS Graduate Medical School Singapore in Outram. NUS offers a broad-based curriculum underscored by multi-disciplinary courses and cross-faculty enrichment. There are 14 faculties offering courses from architecture to medicine to music. A special feature of NUS education is the global dimension of its courses in partnership with some of the world’s best institutions. NUS also enjoys a close teaching-research association with 14 national-level, 16 university-level and 80 faculty-based research institutes and centres. Research activities are strategic and robust, and a ‘no walls’ collaborative culture forms the bedrock of NUS’ research-intensive vibrancy. A spirit of entrepreneurship and innovation promotes creative enterprise university-wide. This is aided by a venture support eco-system that helps students, staff and alumni nurture the development of start-ups into regional and global companies. NUS plays an active role in international academic networks such as the International Alliance of Research Universities (IARU) and Association of Pacific Rim Universities (APRU). It is ranked amongst the best universities in the world, and is well-regarded for disciplines such as Technology, Biomedicine and the Social Sciences. About National Environment Agency The National Environment Agency (NEA) is a statutory board under the Ministry of Environment and Water Resources. It champions a clean and green environment and partners the People, Public, and Private sectors in caring for the environment as a way of life. NEA seeks to protect Singapore's air, land and water resources today to ensure sustainable development and quality living for present and future generations. More information about NEA is available at http://www.nea.gov.sg For further information, please contact Ms Patricia Tay National Parks Board DID: 6471 7814 Email: Patricia_Tay@nparks.gov.sg Mr Ang Lai Lee Keppel Corporation DID: 6413 6427 Email: lailee.ang@kepcorp.com • Keppel Corporation Limited Unaudited Results for the First Half Ended 30 June 2007 The Directors of Keppel Corporation Limited advise the following unaudited results of the Group for the First Half ended 30 June 2007. For further information, please contact Ms Wang Look Fung General Manager, Group Corporate Communications Keppel Corporation Limited Tel: (65) 64136 419 Fax: (65) 64136 452 Email: lf.wang@kepcorp.com